NuStar inks deal with Oxy to transport Texas NGLs

NuStar has begun work to reactivate the line, reverse its flow and convert it from refined products service to NGL service. The pipeline has capacity to move approximately 110,000 bpd.

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SAN ANTONIO -- NuStar Energy announced that the company has
signed a long-term agreement allowing Occidental Petroleum
(Oxy) to ship natural gas liquids (NGLs) on NuStars
currently idled, 200-mi, 12-in. pipeline between Mont Belvieu
and Corpus Christi, Texas.

NuStar has begun work to reactivate the line, reverse its
flow and convert it from refined products service to NGL
service. The pipeline has capacity to move approximately
110,000 bpd.

Oxy will use a majority of the lines capacity to
transport NGLs via an interconnect with an Oxy pipeline to
the Oxy Ingleside Energy Center export facility located in
Ingleside, Texas, at the site of the former Naval base
purchased by Oxy in 2012.

NuStar will continue to market any remaining capacity on the
pipeline. The pipeline project is scheduled to be
completed and in full operation in the second quarter of
2015, although the pipeline may flow at reduced rates this
year.

Once the line is in service, it is expected to generate
approximately $23 million per year of incremental EBITDA for
NuStar.

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